TheAfrican Investment Bank (AIB) is one of three financial institutions of theAfrican Union (AU), along with theAfrican Monetary Fund and theAfrican Central Bank. It is slated to be headquartered inTripoli, Libya.[1] The Protocol establishing the AIB has not yet entered into force, as it awaits the required number of ratifications.[2]
The 2000Lomé Summit adopted the Constitutive Act of the African Union, which outlined the objectives, principles, and organs of the AU. The act, signed by twenty-seven African countries, provided for the establishment of several institutions, including thePan-African Parliament, theCourt of Justice, the African Central Bank, the African Monetary Fund, and the African Investment Bank.[3] In 2005, the AU held a meeting of independent experts inAddis Ababa, Ethiopia, to consider concept papers and draft protocols prepared by theAfrican Union Commission (AUC) regarding the three institutions. The AU also determined the locations for the financial institutions: the African Central Bank inNigeria, the African Investment Bank in Libya, and the African Monetary Fund inCentral Africa.[1]
The Protocol on the African Investment Bank requires 15 ratifications from AU member states to officially enter into force.[4] As of May 2019, only six countries had ratified the Protocol: Benin, Burkina Faso, Chad, Congo, Libya, and Togo.[4][2] The slow pace of ratification is the primary obstacle to the bank's operational launch, with nine more ratifications needed to meet the threshold.[4][2] The target for establishing the AIB under the AU's Agenda 2063 is 2025.[2]
Despite the delay, Libya has made significant progress in preparing for the bank's establishment. In 2022, Prime Minister Abdul Hamid Dbeibah formed a founding committee, with Mustafa Al-Manea, an advisor to the Governor of the Central Bank of Libya, as its Chairman.[5] In October 2023, Al-Manea announced that six African countries had agreed to join the bank as members.[5] At the February 2024 African Union Summit in Addis Ababa, African leaders expressed unanimous support for Libya's efforts to establish the bank.[6][7][8]
In February 2020, the African Union appointed H.E. Nana Addo Dankwa Akufo-Addo, President of Ghana, as the "Champion of the AU Financial Institutions."[9] In this role, he is tasked with providing political leadership to accelerate the establishment of the AIB, the African Monetary Fund, and the African Central Bank.[9] At a presidential dialogue in February 2024, President Akufo-Addo highlighted the urgent need to reform the global financial architecture and strengthen African financial institutions.[9][10]
The push for continental financial integration has gained momentum. In July 2024, the AU Assembly called on all member states to work with "renewed zeal" to sign and ratify the legal instruments for the AIB and the African Monetary Fund.[11] The Assembly also requested that an Extraordinary Session be convened before the end of 2024, dedicated solely to the establishment of the AU's financial institutions.[11]
Additionally, February 2024 saw the launch of the Alliance of African Multilateral Financial Institutions (AAMFI), also known as the "Africa Club."[10] This initiative aims to coordinate African financial institutions and strengthen the continent's influence in the global financial system.[10]
The African Investment Bank is estimated to have a capital of approximately $25 billion.[12][13]
Article 5 of the Bank's Statute confirms that the headquarters will be located in Tripoli, Libya.[14][15] This was formally decided by the AU Assembly in January 2005.[2][16]
The legal framework for the AIB is established by the Protocol on the African Investment Bank, adopted on February 4, 2009, and its accompanying Statute.[17][18][19] The bank's stated purpose is "to foster economic integration and development through investment in development projects in line with the objectives of the Union."[14]
Article 17 of theAgreement outlines the following governing principles for the AIB's banking operations:[20]
According to Article 4 of theAgreement, AIB membership is open to all AU members. Eligible countries that do not become members when operations begin may be admitted later, subject to terms and conditions established by theBoard of Governors (BOG). Admission requires an affirmative vote from at least four-fifths of the Governors, representing no less than three-fourths of the members' total voting power.[21]
The AIB's initial authorizedcapital stock has yet to be determined. It will be divided into a number of shares with a specificpar value, which shall be available to members for subscription in accordance with the provisions of theAgreement. The authorizedcapital stock shall be divided intopaid-in shares andcallable shares. The BOG will from time to time determine the proportion of authorized capital in paid-in shares and callable shares. The BOG may increase the authorized capital stock under terms and conditions it deems advisable. An increase in the authorized capital stock must be approved by a vote of at least four-fifths of the Governors, representing no less than three-fourths of the members' total voting power.[22]
